Tuesday, March 17, 2009

The Real AIG Outrage

President Obama joined yesterday in the clamor of outrage at AIG for paying some $165 million in contractually obligated employee bonuses. He and the rest of the political class thus neatly deflected attention from the larger outrage, which is the five-month Beltway cover-up over who benefited most from the AIG bailout.

Taxpayers have already put up $173 billion, or more than a thousand times the amount of those bonuses, to fund the government's AIG "rescue." This federal takeover, never approved by AIG shareholders, uses the firm as a conduit to bail out other institutions. After months of government stonewalling, on Sunday night AIG officially acknowledged where most of the taxpayer funds have been going.

Since September 16, AIG has sent $120 billion in cash, collateral and other payouts to banks, municipal governments and other derivative counterparties around the world. This includes at least $20 billion to European banks. The list also includes American charity cases like Goldman Sachs, which received at least $13 billion. This comes after months of claims by Goldman that all of its AIG bets were adequately hedged and that it needed no "bailout." Why take $13 billion then? This needless cover-up is one reason Americans are getting angrier as they wonder if Washington is lying to them about these bailouts.

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About Me

Prior to his position as lead pastor in Hilmar California, Ron was senior pastor of Cross Road Assembly in Florence Oregon. He previously served on the pastoral staff at Atlantic Christian Assembly in Cape Town, South Africa, as well as Academic Site Director at Cornerstone Christian College in the same city. He was raised in California.
Ron has a B.A. in Ministerial Studies from Bethany College; an M.A. in Cross-Cultural Studies from Fuller Theological Seminary, and a Master of Divinity from Assemblies of God Theological Seminary.
Ron is married to Karol, his wife of 25 years. They have a 14 year old daughter, Katie.
In his spare time Ron enjoys antiques, bicycling, computers, old cars, shooting, fishing and reading.
e-mail me at ronsbloviating at gmail dot com (change the at and dot)